4 min read Gold has fallen for six straight weeks, its longest losing run since 2018, as 10-year and 30-year Treasury yields climbed to their highest levels in 24 years and a firmer dollar raised the cost of holding the metal. Softer US jobs data has since cooled bets on an October Fed hike, and gold has bounced from major support this week. Price is now pressing into the upper boundary of its local downtrend.
Gold daily chart analysis
Gold bounces from the 4,100 support inside the broader demand zone and runs into the upper boundary of its local downtrend from the late August highs.
Gold has recently bounced from the 4,100 level, a major support that sits inside the broader demand zone holding price since late 2025. The bounce has taken price into the upper boundary of the local downtrend that has been in place since the late August highs. This makes the current area a key test for gold in the sessions ahead.
Gold 1-hour chart analysis
The RSI rolls over from overbought as gold tests the downtrend’s upper boundary, with a break above 4,200 the potential breakout trigger towards 4,300.
On the 1-hour chart, the move into the trendline appears fairly overextended, with the RSI having pushed into overbought territory before turning lower. A bearish 1-hour candle is currently closing, and with price sitting at the upper boundary of the downtrend, gold could potentially see a mean-reverting move to the downside from here.
On the upside, a break above the 4,200 area could mark a valid breakout from the downtrend. That could potentially open the way towards the 4,300 region as the next target.
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